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Another Oil Company Hits the Rails

By Tyler Crowe - Apr 19, 2013 at 2:13PM

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Rail companies and oil companies' relationship keeps growing everyday.

Let's face it, building pipeline to move oil and gas takes a long time, and several refiners and exploration and production companies just can't wait around for these pipes to get built. That is a large reason why HollyFrontier (HFC) just announced that it and its midstream subsidiary Holly Energy Partners (HEP 2.91%) plan to add rail capacity of 70,000 barrels per day to its operations to move oil from Holly Energy's pipes in Southeast New Mexico to HollyFrontier's refining facilities in the region. 

HollyFrontier joins a growing list of refiners that are using rail to supply crude for its operations, and it looks as though this is a pretty advantageous relationship for both refiners and railroad companies. in this video, Fool.com contributor Tyler Crowe looks at some of the advantages of moving crude via rail has for both parties and if this trend will continue as more pipeline gets built. 

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Stocks Mentioned

HollyFrontier Corporation Stock Quote
HollyFrontier Corporation
HFC
Union Pacific Corporation Stock Quote
Union Pacific Corporation
UNP
$216.89 (1.55%) $3.31
Valero Energy Corporation Stock Quote
Valero Energy Corporation
VLO
$123.96 (0.80%) $0.98
Phillips 66 Stock Quote
Phillips 66
PSX
$95.08 (1.38%) $1.29
Tesoro Corporation Stock Quote
Tesoro Corporation
ANDV
Holly Energy Partners, L.P. Stock Quote
Holly Energy Partners, L.P.
HEP
$18.01 (2.91%) $0.51

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